U.S. Dollar Withdrawals of Bitcoin Suspended by Mt. Gox

The largest worldwide Bitcoin exchange announced that withdrawals in U.S. currency will be suspended for two weeks due to the ever-increasing rise in deposit and withdrawal requests.

Mt. Gox issued a press release stating that the “increased volume has made it difficult for our bank to process the transactions smoothly and within a timely manner, which has created unnecessary delays for our global customers.” While withdrawal requests are made in U.S. dollars from around the world, Mt. Gox pointed out that “this is especially so for those in the United States who are requesting wire transfer withdrawals from their accounts.”

The online poker industry has focused a keen eye on Bitcoin as a currency option for making deposits and withdrawals. Just a few sites currently offer the digital currency as a financial transaction alternative, but the numbers may increase as Bitcoin gains acceptance in worldwide markets.

Poker players in particular are always on the lookout for value. Bitcoin plays into that scheme with fluctuating valuation that saw many individuals obtain considerable wealth by purchasing Bitcoins when the market was down. Bitcoins peaked recently at over $200, allowing some with the foresight to buy in when the value was extremely low to achieve astronomical returns on their investment. The latest price is roughly $112 for one Bitcoin.

The two-week suspension will allow the Japan-based Mt. Gox to upgrade its software to better facilitate the heavy amount of wire transfer withdrawal requests in U.S. dollar denominations.

Mt. Gox has been under fire from the U.S. Department of Homeland Security and had its Dwolla account seized by the feds last month for failing to register as a transmitter of funds. In an effort to prevent the money laundering opportunities that has the U.S. government in investigative mode, Mt. Gox announced earlier in June that a user verification policy would be instituted for transactions.

Charles Rettmuller

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Charles has been an avid poker player for a number of years, both live and online. He holds a degree in journalism and previously worked as a reporter for a Chicago-based newspaper. Charles joined the PokerUpdate team in early 2012 and writes daily news articles for the site.